Attached files
file | filename |
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EX-32 - EXHIBIT 32.1 - OAKRIDGE INTERNATIONAL CORP | ex321-093009oak.htm |
EX-31 - EXHIBIT 31.1 - OAKRIDGE INTERNATIONAL CORP | ex311-093009oak.htm |
EX-32 - EXHIBIT 32.2 - OAKRIDGE INTERNATIONAL CORP | ex322-093009oak.htm |
EX-31 - EXHIBIT 31.2 - OAKRIDGE INTERNATIONAL CORP | ex312-093009oak.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10 - Q
[ x ] |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2009 | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from [ ] to [ ] |
Commission File Number: [ ]
(Exact Name of Registrant as Specified in Its Charter)
Nevada |
------------- |
(State or Other Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification No.) |
Suite 1609, 16/F., Jie Yang Building, 271 Lockhart Road, Wanchai, Hong Kong |
n/a |
(Address of Principal Executive Offices) |
(Zip Code) |
(206) 424 7587
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former
Fiscal Year if Changed Since Last Report)
Indicate by check whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |
Yes [ x ] No [ ]
Indicate by check whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "small reporting company" in Rule 12b-2 of the Exchange Act. (check one) |
Large Accelerated Filer [ ] Accelerated Filer [ ] Non-Accelerated Filer [ ] Smaller Reporting Company [ x ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
Yes [ x ] No [ ]
The number of common equity shares outstanding as of September 30, 2009 was 6,510,000 shares of Common Stock, $0.001 par value. |
INDEX
Page |
||
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statement | |
Consolidated Balance Sheet - September 30, 2009 (Unaudited) | 2 |
|
Consolidated Statement of Operations - Three Months ended September 30, 2009, Three Months ended September 30, 2008, and from October 31, 2007 (Inception) to September 30, 2009 (Unaudited) | 3 |
|
Consolidated Statement of Stockholders' Equity - From October 31, 2007 (Inception) to September 30, 2009 (Unaudited) | 4 |
|
Consolidated Statement of Cash Flows - Three Months ended September 30, 2009, Three Months ended September 30, 2008, and from October 31, 2007 (Inception) to September 30, 2009 (Unaudited) | 5 |
|
Notes to Consolidated Financial Statement | 6-16 |
|
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 17-24 |
Item 3. | Quantitative and Qualitative Disclosure About Market Risk | 25 |
Item 4. | Controls and Procedures | 25 |
PART II. OTHER INFORMATION | ||
Item 1 | Legal Proceedings | 26 |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | 26 |
Item 3 | Defaults Upon Senior Securities | 26 |
Item 4 | Submission of Matters to a Vote of Security Holders | 26 |
Item 5 | Other Matters | 26 |
Item 6. | Exhibits | 26 |
SIGNATURES | 27 |
PART I - FINANCIAL INFORMATION
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED BALANCE SHEET |
AS AT SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
Note |
September 30, 2009 |
June 30, |
|||
(Unaudited) |
(Audited) |
||||
ASSETS |
|||||
|
|||||
|
$ |
660 |
$ |
667 |
|
|
10,000 |
10,000 |
|||
|
1,295 |
4,885 |
|||
------------------ |
----------------- |
||||
|
$ |
11,955 |
$ |
15,552 |
|
=========== |
========== |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current liabilities: |
|||||
|
$ |
5,200 |
$ |
7,750 |
|
|
6,394 |
6,384 |
|||
|
569 |
25,349 |
|||
|
8,800 |
8,800 |
|||
------------------ |
------------------ |
||||
|
20,963 |
48,283 |
|||
------------------ |
------------------ |
||||
|
|||||
|
4 |
6,510 |
5,260 |
||
|
4 |
30,590 |
6,840 |
||
|
(46,108) |
(44,831) |
|||
------------------ |
------------------ |
||||
|
(9,008) |
(32,731) |
|||
------------------ |
------------------ |
||||
|
$ |
11,955 |
$ |
15,552 |
|
=========== |
=========== |
||||
See accompanying notes to the consolidated financial statements
2
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009, THREE MONTHS ENDED SEPTEMBER 30, 2008, AND FROM OCTOBER 31, 2007 (INCEPTION) TO SEPTEMBER, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
For the Period |
||||||
For the Three |
For the Three |
from October 31, |
||||
Months Ended |
Months Ended |
2007 (Inception) |
||||
September 30, |
September 30, |
to September 30, |
||||
2009 |
2008 |
2009 |
||||
---------------------- |
---------------------- |
---------------------- |
||||
Net revenues | $ |
- |
$ |
- |
$ |
11,295 |
Cost of revenues | - |
- |
10,821 |
|||
---------------------- |
---------------------- |
---------------------- |
||||
Gross profits | - |
- |
474 |
|||
Other general and administrative expenses | 1,057 |
3,131 |
45,342 |
|||
---------------------- |
---------------------- |
---------------------- |
||||
Loss from operations | (1,057) |
(3,131) |
(44,868) |
|||
Other expenses | ||||||
Interest | 220 |
200 |
1,240 |
|||
---------------------- |
---------------------- |
---------------------- |
||||
Net loss | $ |
(1,277) |
$ |
(3,331) |
$ |
(46,108) |
============= |
============= |
============= |
||||
Weighted average basic and diluted shares outstanding | 6,279,022 |
5,260,000 |
5,053,414 |
|||
============= |
============= |
============= |
||||
Loss per share - basic and diluted * | $ |
(0.00) |
$ |
(0.00) |
$ |
(0.00) |
============= |
============= |
============= |
||||
*Basic and diluted weighted average number of shares is the same since the Company does not have any dilutive securities
See accompanying notes to the consolidated financial statements
3
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY |
FOR THE PERIOD FROM OCTOBER 31, 2007 (INCEPTION) TO SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
Deficit |
||||||||||||
accumulated |
||||||||||||
Additional |
during the |
Total |
||||||||||
Common stock |
paid-in |
development |
stockholders' | |||||||||
Shares |
Amount |
capital |
stage |
deficit |
||||||||
---------------- |
---------------- |
---------------- |
---------------- |
--------------- |
||||||||
Balance at October 31, 2007 | - |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||
(inception) | ||||||||||||
Issuance of founder shares for | ||||||||||||
cash at $0.001 per share - | ||||||||||||
November 30, 2007 | 4,500,000 |
4,500 |
- |
- |
4,500 |
|||||||
Sale of shares for cash at $0.01 | ||||||||||||
per share - March, 2008 | 760,000 |
760 |
6,840 |
- |
7,600 |
|||||||
Net loss | - |
- |
- |
(6,142) |
(6,142) |
|||||||
---------------- |
---------------- |
---------------- |
---------------- |
--------------- |
||||||||
Balance at June 30, 2008 | 5,260,000 |
5,260 |
6,840 |
(6,142) |
5,958 |
|||||||
Net loss | - |
- |
- |
(38,689) |
(38,689) |
|||||||
---------------- |
---------------- |
---------------- |
---------------- |
--------------- |
||||||||
Balance at June 30, 2009 | 5,260,000 |
5,260 |
6,840 |
(44,831) |
(32,731) |
|||||||
Issuance of shares for services at | ||||||||||||
$0.02 per share - July 17, 2009 | 1,250,000 |
1,250 |
23,750 |
- |
25,000 |
|||||||
Net loss | - |
- |
- |
(1,277) |
(1,277) |
|||||||
---------------- |
---------------- |
---------------- |
---------------- |
--------------- |
||||||||
Balance at September 30, 2009 | 6,510,000 |
$ |
6,510 |
$ |
30,590 |
$ |
(46,108) |
$ |
(9,008) |
|||
========= |
========= |
========= |
========= |
======== |
||||||||
See accompanying notes to the consolidated financial statements
4
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009, THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND FROM OCTOBER 31, 2007 (INCEPTION) TO SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
For the Period |
||||||
For the Three |
For the Three |
from October 31, 2007 |
||||
Months Ended |
Months Ended |
(Inception) to |
||||
September 30, 2009 |
September 30, 2008 |
September 30, 2009 |
||||
----------------------- |
----------------------- |
------------------------ |
||||
Cash Flows from Operating Activities: | ||||||
Net Loss | $ |
(1,277) |
$ |
(3,331) |
$ |
(46,108) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||||
Common Stock Issuance for Services | 25,000 |
- |
25,000 |
|||
Changes in Assets and Liabilities: | ||||||
(Decrease)/Increase in Accrued Expenses | (2,550) |
3,150 |
5,200 |
|||
Increase in Other Payable | 10 |
- |
6,394 |
|||
(Decrease)/Increase in Amount due to director | (24,780) |
- |
569 |
|||
Decrease/(Increase) in Account Receivable | 3,590 |
(1,295) |
||||
Increase in Deposit on License Technology | - |
- |
(10,000) |
|||
Increase in Shareholder Loan | - |
- |
8,800 |
|||
------------------- |
------------------- |
------------------- |
||||
Net Cash Used in Operating Activities | (7) |
(181) |
(11,440) |
|||
------------------- |
------------------- |
------------------- |
||||
Cash Flows from Investing Activities: | - |
- |
- |
|||
------------------- |
------------------- |
------------------- |
||||
Cash Flows from Financing Activities: | ||||||
Proceeds from Sale of Common Stock | - |
- |
12,100 |
|||
------------------- |
------------------- |
------------------- |
||||
Net Cash Provided by Financing Activities | - |
- |
12,100 |
|||
------------------- |
------------------- |
------------------- |
||||
(Decrease) / Increase in Cash | (7) |
(181) |
660 |
|||
Cash - Beginning of Period | 667 |
6,733 |
- |
|||
------------------- |
------------------- |
------------------- |
||||
Cash - End of Period | $ |
660 |
$ |
6,552 |
$ |
660 |
============ |
============ |
============ |
||||
Supplemental Disclosures of Cash Flow Information: | ||||||
Interest Paid | $ |
220 |
$ |
200 |
$ |
1,240 |
============ |
============ |
============ |
||||
Income Taxes Paid | $ |
- |
$ |
- |
$ |
- |
============ |
============ |
============ |
5
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
Oakridge International Corporation (the "Company") is a Nevada corporation, incorporated on October 31, 2007. The Company is currently a development stage enterprise, as defined by Statement of Financial Accounting Standard ("SFAS") No. 7 "Accounting and Reporting for Enterprises in the Development Stage". The Company's office is located in Hong Kong, China and its principal business will include recycling scrap and End Of Life ("EOL") electronic Printed Circuit Boards ("PCB"), and the establishment of recycling operations in Asia and in the USA. |
On March 25, 2008, the Company commenced its operations in the recycling business by entering into a non- exclusive contract to license a proprietary PCB recycling license technology and has begun the evaluation of this technology. See note 7 for details. |
|
|
|
|
6
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
|
|
|
|
|
Place of | Attributable | ||||
Name of Company | Incorporation | Interest | |||
Waytop Asia Pacific Limited | Hong Kong | 100% | |||
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
|
|
|
|
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
|
|
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
|
The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees" which codified SFAS 123 and the Emerging Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or Services". Measurement of share-based payment transactions with non-employees shall be based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction should be determined at the earlier of performance commitment date or performance completion date. |
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OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
Recently Implemented Standards ASC 105, Generally Accepted Accounting Principles ("ASC 105") (formerly Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles a replacement of FASB Statement No. 162) reorganized by topic existing accounting and reporting guidance issued by the Financial Accounting Standards Board ("FASB") into a single source of authoritative generally accepted accounting principles ("GAAP") to be applied by nongovernmental entities. All guidance contained in the Accounting Standards Codification ("ASC") carries an equal level of authority. Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. Accordingly, all other accounting literature will be deemed "non-authoritative". ASC 105 is effective on a prospective basis for financial statements issued for interim and annual periods ending after September 15, 2009. The Company has implemented the guidance included in ASC 105 as of July 1, 2009. The implementation of this guidance changed the Company's references to GAAP authoritative guidance but did not impact the Company's financial position or results of operations. |
|
ASC 855, Subsequent Events ("ASC 855") (formerly Statement of Financial Accounting Standards No. 165, Subsequent Events) includes guidance that was issued by the FASB in May 2009, and is consistent with current auditing standards in defining a subsequent event. Additionally, the guidance provides for disclosure regarding the existence and timing of a Company's evaluation of its subsequent events. ASC 855 defines two types of subsequent events, "recognized" and "non-recognized". Recognized subsequent events provide additional evidence about conditions that existed at the date of the balance sheet and are required to be reflected in the financial statements. Non-recognized subsequent events provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date and, therefore; are not required to be reflected in the financial statements. However, certain non-recognized subsequent events may require disclosure to prevent the financial statements from being misleading. This guidance was effective prospectively for interim or annual financial periods ending after June 15, 2009. The Company implemented the guidance included in ASC 855 as of April 1, 2009. The effect of implementing this guidance was not material to the Company's financial position or results of operations. |
|
ASC 944, Financial Services - Insurance ("ASC 944") contains guidance that was previously issued by the FASB in May 2008 as Statement of Financial Accounting Standards No. 163, Accounting for Financial Guarantee Insurance Contracts - an interpretation of FASB Statement No. 60 that provides for changes to both the recognition and measurement of premium revenues and claim liabilities for financial guarantee insurance contracts that do not qualify as a derivative instrument in accordance with ASC 815, Derivatives and Hedging (formerly included under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities). This financial guarantee insurance contract guidance also expands the disclosure requirements related to these contracts to include such items as a Company's method of tracking insured financial obligations with credit deterioration, financial information about the insured financial obligations, and management's policies for placing and monitoring the insured financial obligations. ASC 944, as it relates to financial guarantee insurance contracts, was effective for fiscal years beginning after December 15, 2008, except for certain disclosures related to the insured financial obligations, which were effective for the third quarter of 2008. The Company does not have financial guarantee insurance products, and, accordingly, the implementation of this portion of ASC 944 did not have an effect on the Company's results of operations or financial position. |
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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ASC 805, Business Combinations ("ASC 805") (formerly included under Statement of Financial Accounting Standards No. 141 (revised 2007), Business Combinations) contains guidance that was issued by the FASB in December 2007. It requires the acquiring entity in a business combination to recognize all assets acquired and liabilities assumed in a transaction at the acquisition-date fair value, with certain exceptions. Additionally, the guidance requires changes to the accounting treatment of acquisition related items, including, among other items, transaction costs, contingent consideration, restructuring costs, indemnification assets and tax benefits. ASC 805 also provides for a substantial number of new disclosure requirements. ASC 805 also contains guidance that was formerly issued as FSP FAS 141(R)-1, Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies which was intended to provide additional guidance clarifying application issues regarding initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. ASC 805 was effective for business combinations initiated on or after the first annual reporting period beginning after December 15, 2008. The Company implemented this guidance effective January 1, 2009. Implementing this guidance did not have an effect on the Company's financial position or results of operations; however it will likely have an impact on the Company's accounting for future business combinations, but the effect is dependent upon acquisitions, if any, that are made in the future. |
|
ASC 810, Consolidation ("ASC 810") includes new guidance issued by the FASB in December 2007 governing the accounting for and reporting of noncontrolling interests (previously referred to as minority interests). This guidance established reporting requirements which include, among other things, that noncontrolling interests be reflected as a separate component of equity, not as a liability. It also requires that the interests of the parent and the noncontrolling interest be clearly identifiable. Additionally, increases and decreases in a parent's ownership interest that leave control intact shall be reflected as equity transactions, rather than step acquisitions or dilution gains or losses. This guidance also requires changes to the presentation of information in the financial statements and provides for additional disclosure requirements. ASC 810 was effective for fiscal years beginning on or after December 15, 2008. The Company implemented this guidance as of January 1, 2009. The effect of implementing this guidance was not material to the Company's financial position or results of operations. |
|
ASC 825, Financial Instruments ("ASC 825") includes guidance which was issued in February 2007 by the FASB and was previously included under Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities Including an amendment of FASB Statement No. 115. The related sections within ASC 825 permit a company to choose, at specified election dates, to measure at fair value certain eligible financial assets and liabilities that are not currently required to be measured at fair value. The specified election dates include, but are not limited to, the date when an entity first recognizes the item, when an entity enters into a firm commitment or when changes in the financial instrument causes it to no longer qualify for fair value accounting under a different accounting standard. An entity may elect the fair value option for eligible items that exist at the effective date. At that date, the difference between the carrying amounts and the fair values of eligible items for which the fair value option is elected should be recognized as a cumulative effect adjustment to the opening balance of retained earnings. The fair value option may be elected for each entire financial instrument, but need not be applied to all similar instruments. Once the fair value option has been elected, it is irrevocable. Unrealized gains and losses on items for which the fair value option has been elected will be reported in earnings. This guidance was effective as of the beginning of fiscal years that began after November 15, 2007. The Company does not have eligible financial assets and liabilities, and, accordingly, the implementation of ASC 825 did not have an effect on the Company's results of operations or financial position. |
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
|
|
|
Fair value guidance in ASC 820 was initially effective for fiscal years beginning after November 15, 2007 and for interim periods within those fiscal years for financial assets and liabilities. The effective date of ASC 820 for all non-recurring fair value measurements of nonfinancial assets and nonfinancial liabilities was fiscal years beginning after November 15, 2008. Guidance related to fair value measurements in an inactive market was effective in October 2008 and guidance related to orderly transactions under current market conditions was effective for interim and annual reporting periods ending after June 15, 2009. |
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Recently Issued Standards |
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13
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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14
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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15
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
|
|
|
September 30, |
|||
2009 |
|||
$ |
|||
United States federal income tax rate | 15% |
||
Valuation allowance-US federal income tax | (15%) |
||
------------------- |
|||
Provision for income tax | - |
||
========== |
|||
Hong Kong statutory rate | 17.5% |
||
Valuation allowance - Hong Kong Rate | (17.5%) |
||
------------------- |
|||
Provision for income tax | - |
||
========== |
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16
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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Forward-Looking Statements |
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Critical Accounting Policy and Estimates |
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Operation Overview |
Business of the Issuer |
|
|
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Summary of Our Plans |
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|
* |
Customers for the raw materials recovered from this recycling technology |
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* |
Financing for processing these materials |
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18
Products and Services |
|
|
|
Sales, Marketing and Distribution |
|
Recycle Technology |
|
On June 29, 2009 we entered into a Binding Memorandum of Terms for the proposed acquisition of Total Union PCB Recycle Ltd. ("Total Union"), the licensor of the PCB Recycling process. The agreement is pending completion of definitive documents and closure of a Private Investments in Public Equity ("PIPE") by Oakridge to support the transaction, prior to December 31, 2009 after which the Company's right to acquire Total Union will cease. |
19
Market |
|
|
Competition |
While the typical extraction methods of burning and chemical processing do deliver these commodity metals, it is done at the expense of the environment. The mechanical process yields two raw materials, a resin powder and a metal concentrate with no emissions or impact to the environment. The resin powder is utilized as an additive in products such as outdoor decking, furniture, and waterproofing materials. The metal concentrate, primarily copper, is used to create new electrical and electronic products such as wire, printed circuit boards, and other electrical components. The markets for our products and services are competitive, and we face competition from a number of sources. Many of our competitors have substantially greater resources than us. Those resources may include greater name recognition; larger product lines; complementary lines of business; and greater financial, marketing, information systems, and other resources. We can give no assurance that competitive pressures will not materially and adversely affect the Company's business, financial condition, and results of operations. |
20
Twelve Months Operating Plan |
|
Financial |
|
Marketing |
|
|
|
Operations - Hong Kong |
Our plan is to provide operating capital and source additional EOL electronic scrap to the Hong Kong facility. The Hong Kong facility will also source scrap PCBs from PCB manufacturing plants in the Guangdong province, where there are abundant electronics manufacturing facilities. We will either sell these scrap PCBs or recycle the PCB scraps through our own recycle plant. |
21
Operations - United States |
|
|
Research and Development |
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Costs and Effects of Compliance with Environmental Laws |
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Employees |
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Results of Operations |
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The Company has realized no revenue, no cost of revenue and no gross profit for the three month period ended September 30, 2008. For the period from October 31, 2007 (date of inception) to September 30, 2009, the Company realized revenue of $11,295, incurred a cost of revenue of $10,821 and achieved a gross profit of $474. |
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For the three month period ended September 30, 2008, we had no gross profit and our total operating expenses were $3,131, all of which were selling, general and administrative expenses. We also had $200 in interest expense. Our net loss to our shareholders for the three month period ended September 30, 2008 was $3,331. For the period from October 31, 2007 (date of inception) to September 30, 2009, the accumulated gross profit was $474, the total operating expenses were $45,342 which were all selling, general and administrative expenses, and we had $1,240 in interest expense, resulting in an accumulated net loss to our shareholders of $46,108. |
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Liquidity and Capital Resources |
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On June 29, 2009 we entered into a Binding Memorandum of Terms for the proposed acquisition of Total Union PCB Recycle Ltd., the licensor of the PCB Recycling process. The agreement is pending completion of definitive documents and closure of a $5.0 million Private Investments in Public Equity ("PIPE") by Oakridge to support the transaction prior to December 31, 2009 after which the Company's right to acquire Total Union ceases. |
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Item 3. Quantitative and Qualitative Disclosures about Market Risk. |
Quantitative and Qualitative Disclosures about Market Risk: |
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Item 4. Controls and Procedures. |
Evaluation of Disclosure Controls and Procedures: |
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Management's Report on Internal Control over Financial Reporting |
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Changes in Internal Controls over Financial Reporting: |
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PART II. OTHER INFORMATION |
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There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company. The Company's property is not the subject of any pending legal proceedings. |
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Description |
3.1 |
Articles of Incorporation (1) |
3.2 |
Bylaws (1) |
31.1 |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Attached Hereto) |
31.2 |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Attached Hereto) |
32.1 |
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350. (Attached Hereto) |
32.2 |
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350. (Attached Hereto) |
1 | Incorporated by reference to our Registration Statement on Form S-1 filed with the SEC on July 14, 2008 |
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SIGNATURES
In accordance with to requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
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By: |
/s/ Michael Burney |
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Name: |
Michael Burney |
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Title: |
President, Director and |
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Chief Executive Officer |
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By: |
/s/ Sau Shan Ku |
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Name: |
Sau Shan Ku |
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Title: |
Treasurer, Secretary, Director |
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Chief Financial Officer |
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